KBC have finalised the sale of its
private-banking unit, KBL, for approximately €1bn ($1.23bn) to
Precision Capital, a company representing a Qatari investor’s
interests.The deal, announced on 10 October 2011, is set to release
around €700m in capital for KBC.

Luxembourg-based Precision Capital said the
deal opens up the potential for growth in Europe, Asia and the
Middle East and it plans a large recruitment campaign designed to
strengthen its level of service to clients.


KBC close is second major

The Qatari investment group also bought Dexia
Banque Internationale a Luxembourg (BIL) for €730m in December last

KBL say it will work closely with Precision
Capital to tap in to these new international markets.

KBC CEO Johan Thijs said: “This transaction is
a major step in the implementation of our updated strategy of
focusing on our core bancassurance business in our home markets in
Belgium and Central and Eastern Europe (Czech Republic, Slovakia,
Hungary, Bulgaria).”


Sale part of KBC

KBC was required to sell KBL as part of a
restructuring agreement reached with the European Union’s executive
arm, the European Commission (EC).

The transaction includes all KBC’s private
banking subsidiaries, as well as KBL’s custody and life insurance

The headquarters of the KBL brand management
team and operation will remain in Luxembourg after the sale.

KBL is one of Europe’s largest onshore private
banking groups with affiliated local banks across nine European